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5 Types of Business Insurance and Why You Need Them

By August 18, 2021No Comments

business insurance

business insurance. Business is full of ups and downs, and business insurance is undoubtedly important to prepare for those downs. In such a case, business insurance plays a great role. Whether it is a small or enterprise-level business, protecting your business from different risks can be helpful.

Getting Business Insurance seems like finding a pin from the haystack. Quite tough! You have to consider several factors when looking for business insurance, such as knowing the type of business insurance, understanding your business’s risks, estimating your insurance needs, and many more. Above all, there are different types of business insurance; no doubt, choosing the ideal one can be tricky. 

In this blog post, we will take our research deeper, talking about business insurance types and why you actually need them. Let’s start-

Types of Business Insurance 

  1. Workers’ Compensation Insurance
  2. General Liability Insurance
  3. Professional Liability Insurance
  4. Property Insurance
  5. Life Insurance / Key Executive Insurance

Let’s talk in-depth about these different types of business insurance-

  • Workers’ Compensation Insurance

The first insurance type on our list is worker compensations insurance for business employees that offers coverage for medical costs and a portion of lost wages for those employees who get injured or ill on the job. This type of insurance is required by every state of the law. Let’s say if an employee got injured while using machinery in the factory, then this type of insurance will cover all his medical costs. But at the same time, the point should be noted laws regarding Workers’ Compensation can vary depending on the company’s location. 

  • Life Insurance / Key Executive Insurance 

The next Business Insurance on our list is life insurance for employees. If you want to attract top talent, life insurance can be a great move. This coverage for employees raises the confidence of an individual to work more to fuel the business’s success. The business also offers special “Key Person” policies for employees that are usually for those without whom business cannot function.  Key Person Insurance protects against a key employee’s unexpected death. 

  • Professional Liability Insurance 

Professional liability insurance is also commonly known as “Errors and Omissions Insurance” or “Malpractice Insurance.” This type of insurance fits perfectly in case you have a service-based business, but at the same time, it can also be beneficial for other types of businesses too. Professional liability insurance protects from lawsuits that basically allege negligence in providing shoddy work or making mistakes. We all know mistakes usually happen, and saying yes to liability insurance can be adequate in this matter, even if you think you don’t need it.

  • Property Insurance

Property insurance is a different term for every different type of business. So, it is quite important to carefully pick the property insurance that comes into two types- “all-risk” &  “Peril-specific” policies or “named-peril.”

  • “All-risk” policy covers everything. Hence, it is found to be a great way to avoid overlap of coverage and gaps formed in trying to cover your liabilities.
  • “Peril-specific” policies or “named-peril” coverage works in a few particular perils that are named in the policy. This type of property insurance is considered perfect when there is a high risk in a particular area. 

 

  • General Liability Insurance

General liability insurance is quite beneficial for businesses as no one wants to leave their businesses open to different risks and situations such as a variety of claims, including injuries, accidents, or other claims of negligence. General liability insurance is designed to protect you and your business from all such situations and further help pay for medical expenses, libel, slander, legal costs, property damage, or faulty products. 

Final Words

Above, we have covered everything you need to know about the top five types of business insurance and why you need them. If you also want the same, don’t forget to get in touch with us. 

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About the Williams Agency

The Williams Agency is an independent insurance agency offering a comprehensive suite of insurance solutions to protect you from the unexpected in Bradford, PA and throughout McKean County.